Final answer:
True. The concept that self-talk influences how situations are interpreted is true. It involves metacognition and can be affected by cognitive dissonance, reciprocal determinism, and cognitive biases.
Step-by-step explanation:
The statement, 'Self-talk is an individual's internal thought processes that influence how a situation is interpreted' is indeed true. Self-talk comprises the internal dialogue that can steer our interpretation of a situation, influencing our feelings, behaviors, and our attitudes. This form of internal communication is a part of metacognition, enabling individuals to assess and direct their thoughts and emotions.
As discussed in social psychology, thoughts and behaviors can also be influenced by cognitive dissonance which is the discomfort experienced when our actions do not align with our beliefs, leading to an alteration in either of them to resolve the conflict. Therefore, self-talk is an essential mechanism in managing our perception of reality and plays a crucial role in how we interact with the environment and social contexts, as suggested by the principle of reciprocal determinism, Thomas's theorem, and cognitive bias considerations.